Under this collaboration, customers of Kalshi’s U.S.-registered futures commission merchant, Kalshi Prime, will be able to borrow against digital assets held at BitGo, which is a digital asset infrastructure firm, and use the proceeds to fund margin positions on futures traded on Kalshi’s prediction markets platform, according to the report.
This arrangement is designed to meet the needs of investors who, for example, don’t want to exit their bitcoin holdings or rely on stablecoins for their business operations, Kalshi Prime CEO Jeff Bandman told Bloomberg in an interview.
“What we wanted to do was make it possible for customers to stay in crypto,” Bandman said, per the report.
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CoinDesk reported in July that Kalshi’s perpetual futures tied to bitcoin and other digital assets topped $1 billion in trading volume within a week of their launch in June.
The Commodity Futures Trading Commission (CFTC) gave both Kalshi and Coinbase approval to list perpetual futures in the United States.
A Kalshi executive told Reuters in July that the company aimed to expand into the derivatives space for things like metals, foreign exchange and energy markets and to compete against traditional exchange operators by offering perpetual futures.
CNBC reported in September that Kalshi obtained CFTC permission to list precious metals-related perpetual futures, including those for gold and silver, on its platform.
CNBC reported in April that perpetual futures are one of the biggest and riskiest parts of crypto trading, that they make up more than 70% of centralized cryptocurrency exchanges’ volume, and that Kalshi and Polymarket were set to begin offering the products once the CFTC allowed the products in the U.S.
Meanwhile, BitGo announced in January that it raised $212.8 million in its initial public offering. Reuters reported at the time that the IPO valued the company at $2.08 billion, a figure higher than the $1.96 billion BitGo had said it was targeting.
In August, BitGo introduced BitGo Link, describing it as a centralized control layer that gives trading and treasury teams a unified way to manage their capital across BitGo and other exchanges.
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